- Xpeng raised more than $900 million for its robotics arm at a $6.3 billion valuation in a round led by IDG Capital.
- The company is converting its robotics business into a standalone subsidiary called Dogotix.
- Xpeng is trying to mass-produce its IRON humanoid before the end of 2026 while its car business posts widening losses.
Xpeng’s robotics business has raised more than $900 million at a $6.3 billion valuation in a round led by IDG Capital
The Chinese EV maker now has the cash to push its IRON humanoid to reach mass production this year.
Why is Xpeng making robots if its car business is suffering?
The Chinese electric vehicle maker Xpeng (NYSE: XPEV) has raised over $900 million for its robotics business at a $6.3 billion valuation. The funding round was led by IDG Capital, with other major investors including Tencent and Alibaba (NYSE: BABA).
Cryptopolitan previously reported that Xpeng calls itself a “Physical AI company” that makes humanoid robots, robotaxis, and flying vehicles. The company is spinning off its robotics assets and staff into a standalone subsidiary called Dogotix. The money will help the company mass-produce its IRON humanoid robot by the end of 2026, with commercial deliveries in China and overseas markets scheduled to start in 2027.
On the other hand, Xpeng’s car business reported a net loss of 1.34 billion yuan ($199.4 million) for the second quarter of 2026. That loss is 179% larger than the same period last year. However, revenue rose 8% to 19.7 billion yuan. The company delivered 103,295 vehicles in the second quarter, up 64.8% from the first quarter.
Early units of the IRON humanoid robot will work in Xpeng’s own showrooms and factories in order to let the company test and improve the robots without needing outside customers first.
The IRON robot has 76 degrees of freedom across its body. Each hand has 21 degrees of freedom, giving it near-human movement. It runs on three of Xpeng’s own Turing AI chips that provide a combined 2,250 TOPS of computing power. The company also says IRON can perform complex tasks on its own without remote control from a human.
Xpeng believes it has a manufacturing advantage over competitors like Tesla’s Optimus robot because it can use the supply chains and factories it already built for its cars. Notably, Tesla has yet to sell any of its Optimus robots.
Xpeng wants to make over 1,000 robots per month at first, but its long-term goal is to produce 1 million robots per year by 2030.
What companies invested in XPeng?
Of the $900 million raised by XPeng, $600 million came from outside investors, while $200 million was taken from an XPeng subsidiary. Xpeng CEO He Xiaopeng and co-president Brian Gu provided the last $100 million. Xpeng called the round the largest single private funding round ever for a Chinese robotics maker.
The company will own about 82% of the new subsidiary, but after all warrants and incentives are used, that stake could drop to 68.41%.
The deal includes a seven-year timeline in which Dogotix must complete a qualified IPO or risk investors forcing a buyback. In the event of that, they would get back their original investment plus 8% annual compound interest. Or they could get 120% of what they paid, whichever is higher.
Notably, none of the closing conditions have been met yet, so the deal could still fall through, and despite the impressive funding round, XPEV traded down 2.38% at $11.90 in pre-market activity.
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FAQs
Who led XPeng's robotics funding round and who else invested?
IDG Capital led the round, with Gaorong Ventures participating and Tencent and Alibaba backing it as strategic investors. External investors put up about $600 million, an XPeng subsidiary added $200 million, and companies controlled by CEO He Xiaopeng and co-president Brian Gu contributed $100 million.
What is Dogotix and how much of it does XPeng keep?
Dogotix is the standalone subsidiary XPeng is creating to hold its robotics assets, IP and staff. XPeng will retain about 82% ownership, which could fall to roughly 68% if warrants are exercised and an equity incentive plan is fully used, but Dogotix stays consolidated on XPeng's books.
When will XPeng's IRON robot enter mass production?
XPeng plans to begin mass-producing IRON by the end of 2026, with commercial deliveries in China and overseas markets starting in 2027. The company is targeting monthly capacity above 1,000 units and has floated a goal of one million units a year by 2030.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
